Jakarta: Indonesian President Joko Widodo’s (Jokowi’s) plan to lift the public activity restrictions (PPKM) at the end of the year will have a positive impact on the Indonesian economy, Governor of Bank Indonesia (BI), Perry Warjiyo, has said.
"People's mobility and economic and financial activities will increase and push Indonesia's economic growth to be better, especially from various consumption activities of the government," he said while announcing the results of the December 2022 meeting of the central bank’s board of governors, which was followed online here on Thursday.
Therefore, BI will continue to support coordination and synergy with the government, with monetary policies that support stability, as well as the macroprudential policy, payment system digitalization policy, market deepening policy, and economic and financial inclusion policy to support growth.
BI has projected that Indonesia's economic growth in 2022 will reach 4.9 percent. However, with the lifting of PPKM, Warjiyo said he is optimistic that the growth could touch 5 percent at the end of this year.
Currently, Indonesia's economic growth is still good, he noted. Domestic demand remains resilient, supported by people's purchasing power and the confidence of economic players that is still maintained.
The growth was reflected in various indicators in November 2022 and in the latest BI survey results, such as consumer confidence, retail sales, and the Manufacturing Purchasing Managers' Index (PMI).
The performance of exports is projected to remain strong, especially backed by the exports of coal, palm oil, iron, and steel, as well as exports of services, in line with strong demand from several main trading partners and the positive impact of the government’s policies.
He further said that, spatially, the positive performance of exports has been mainly driven by Kalimantan, Sumatra, and Sulawesi-Maluku-Papua (Sulampua), which have continued to grow strongly.
"The economic growth that remains good is in line with the growth in business fields where the wholesale and retail trade, processing industry, as well as transportation and warehousing sectors are growing quite strongly," he added.
The BI governor projected that Indonesia's economic growth in 2023 will remain strong even though it may slow slightly, in line with the global economic slowdown, to reach midway between 4.5 percent and 5.3 percent.
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